12 Borrowings.

12 Borrowings.
(XLS:) Notes to the Company Financial Statements – Borrowings – Analysis by nature

 

Carrying amount
2013
£m

Coupon rate
2013
%

Fair value
2013
£m

Carrying amount
2012
£m

Coupon rate
2012
%

Fair value
2012
£m

Subordinated borrowings

 

 

 

 

 

 

6.385% Sterling perpetual capital securities (Tier 1)

680

6.39

650

700

6.39

636

5.875% Sterling undated subordinated notes (Tier 2)

418

5.88

438

419

5.88

425

4.0% Euro subordinated notes 2025 (Tier 2)

498

4.00

531

479

4.00

502

10% Sterling subordinated notes 2041 (Tier 2)

309

10.00

417

309

10.00

425

Total borrowings

1,905

 

2,036

1,907

 

1,988

As at 31 December 2013, the Group had in place a £1.00bn syndicated committed revolving credit facility provided by a number of its key relationship banks, £0.04bn matures in October 2017 and £0.96bn matures in October 2018. A test drawing was made under this facility during 2013. No amounts were outstanding at 31 December 2013.

6.385% Sterling perpetual capital securities

In 2007, Legal & General Group Plc issued £600m of 6.385% Sterling perpetual capital securities. Simultaneous with the issuance, the fixed coupon was swapped into six month LIBOR plus 0.94% pa. These securities are callable at par on 2 May 2017 and every three months thereafter. If not called, the coupon from 2 May 2017 will be reset to three month LIBOR plus 1.93% pa. For regulatory purposes these securities are treated as innovative tier 1 capital.

5.875% Sterling undated subordinated notes

In 2004, Legal & General Group Plc issued £400m of 5.875% Sterling undated subordinated notes. These notes are callable at par on 1 April 2019 and every five years thereafter. If not called, the coupon from 1 April 2019 will be reset to the prevailing five year benchmark gilt yield plus 2.33% pa. These notes are treated as tier 2 capital for regulatory purposes.

4.0% Euro subordinated notes 2025

In 2005, Legal & General Group Plc issued €600m of 4.0% Euro dated subordinated notes. The proceeds were swapped into sterling. The notes are callable at par on 8 June 2015 and each year thereafter. If not called, the coupon from 8 June 2015 will reset to a floating rate of interest based on prevailing three month Euribor plus 1.7% pa. These notes mature on 8 June 2025 and are treated as tier 2 capital for regulatory purposes.

10% Sterling subordinated notes 2041

On 16 July 2009, Legal & General Group Plc issued £300m of 10% dated subordinated notes. The notes are callable at par on 23 July 2021 and every five years thereafter. If not called, the coupon from 23 July 2021 will be reset to the prevailing five year benchmark gilt yield plus 9.325% pa. These notes mature on 23 July 2041 and are treated as tier 2 capital for regulatory purposes.

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